Preview

Practice Intermediate Acct. Exam

Good Essays
Open Document
Open Document
1114 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Practice Intermediate Acct. Exam
Intermediate Accounting 1 Exam 1 Spring 2010 1. What are the statements of financial accounting concepts (sfac) intended to establish? a. Generally accepted accounting principles in financial reporting by businesses. b. Generally accepted accounting principles for businesses, not for profit c. The objectives and concepts for use in developing standards of financial accounting and reporting. d. The hierarchy of sources of generally accepted accounting principles.

2. During the lifetime of a business, accountants produce financial statements at arbitrary moments in time in accordance with which basic accounting concept? a. Verifiability b. Peridodicity c. Conservatism d. Matching

3. Continuation of an accounting entity in the absence of evidence to the contrary is an example of the basic concept of a. Accounting entity b. Consistency c. Going concern d. Substance over form

4. Reporting inventory at the lower of cost or market is a departure from the accounting principle of a. Historical cost b. Consistency c. Conservatism d. Full disclosure

5. SFAC 2, Qualitative Characteristics of accounting information, identifies the two primary qualities that make accounting information useful for decision making as a. Neutral and verifiable b. Fair and precise c. Relevant and reliable d. Consistent and comparable

6. According to statements of financial accounting concepts, neutrality is an ingredient of
Reliability Relevance a. Yes yes b. Yes no c. No yes d. No no

7. Which of the following is considered a pervasive constraint by SFAC 2? a. Benefits> costs b. Conservatism c. Timeliness d. Verifiability

8. Materiality is the threshold for recognition of accounting information. Which of the following statements is true with regard to materiality?

You May Also Find These Documents Helpful

  • Good Essays

    Which of the following statements about the accounting entity concept is false? A. The concept puts a boundary on the transactions that are to be recorded for any particular acco unting entity. B. Accounting…

    • 3055 Words
    • 13 Pages
    Good Essays
  • Satisfactory Essays

    1. Answer Questions #1 & #2 on the exam paper and Questions #3 to #6 in the exam booklet(s). Show computations.…

    • 1903 Words
    • 8 Pages
    Satisfactory Essays
  • Powerful Essays

    Learning Objectives 1. 2. 3. 4. 5. 6. 7. 8. Describe the usefulness of a conceptual framework. Describe the FASB’s efforts to construct a conceptual framework. Understand the objectives of financial reporting. Identify the qualitative characteristics of accounting information. Define the basic elements of financial statements. Describe the basic assumptions of accounting. Explain the application of the basic principles of accounting. Describe the impact that constraints have on reporting accounting information. 1, 2, 3, 4, 5 6, 13 7, 11, 12 8, 9, 11, 12 10, 12 1, 2 2, 3, 4 5 6, 7 6, 7, 8, 9, 10 3, 6, 7 Brief Exercises Exercises 1, 2…

    • 18492 Words
    • 74 Pages
    Powerful Essays
  • Good Essays

    7. The inventory cost flow assumption in which the oldest costs incurred become part of cost of goods sold when units are sold is…

    • 961 Words
    • 4 Pages
    Good Essays
  • Good Essays

    3.1 Be able to identify and use the appropriate accounting system to meet specific organisational requirements. 3.2…

    • 527 Words
    • 3 Pages
    Good Essays
  • Good Essays

    acc 422 final exams

    • 1656 Words
    • 7 Pages

    9. If the beginning inventory for 2006 is overstated, the effects of this error on cost of goods sold for 2006, net income for 2006, and assets at December 31, 2007, respectively, are…

    • 1656 Words
    • 7 Pages
    Good Essays
  • Powerful Essays

    Mid Term Exam

    • 2499 Words
    • 10 Pages

    Ans – The rate that a security would pay if no inflation were expected over it’s holding period.…

    • 2499 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Molson Cors

    • 938 Words
    • 4 Pages

    c. In general, why might financial statement users be interested in a measure of persistent income?…

    • 938 Words
    • 4 Pages
    Powerful Essays
  • Satisfactory Essays

    Acc/561 Exam

    • 1439 Words
    • 6 Pages

    The group of users of accounting information charged with achieving the goals of the business is its…

    • 1439 Words
    • 6 Pages
    Satisfactory Essays
  • Good Essays

    Case 7.1 Anne Aylor

    • 746 Words
    • 3 Pages

    B. Materiality is a relative rather than an absolute concept. The materiality threshold that will influence users of the financial statements will vary depending on the context in which the entity operates.…

    • 746 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Acc 100 Exam Review

    • 2575 Words
    • 11 Pages

    Chapter One Sole Proprietorship: A business with one owner (and is not a taxable entity) Partnerships: Owned by two or more individuals (also not a taxable entity) Non-business entities: organized for a purpose other than earning a profit Economic Entity Concept: Assuming that everything is accounted for in a business. Personal costs must be separate from the business. Operating Activities: “Day to day” activities Investing Activities: Purchase and sale of long-term assets Financing: Money needed to start a business Retained Earnings Equation: Beginning RE + Net Income – Dividends = Ending Retained Earnings Cost Principle: Assets are recorded at the cost to acquire them Going Concern: That a company will continue to operate in the near future 4 Fundamental Financial Statements 1.) Income Statement a. Reports the results from Operations in a specific period of time b. Revenues, expenses, and Net Income/Loss (Part of “performance”) 2.) Balance Sheet a. Shows the financial position of the company up to date b. Assets, Liabilities, and Shareholders’ Equity 3.) Cash Flow Statements a. Shows the movements of cash and cash consequences of transactions by the type of activity for a period of time. 4.) Statement of Retained Earnings a. Shows the changes in retained earnings for a specific period of time (format similar to equation) Income Statement => Statement of Retained Earnings => Balance Sheet => Cash Flow…

    • 2575 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    - “The Development of financial accounting and reporting standards” retrieved from Spiceland, J. David; James F. Sepe and Mark W. Nelson, (2011) Intermediate Accounting, Sixth Edition. New York, McGraw-Hill Companies, Inc…

    • 1294 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    The current set of principles that accountants use rests upon some underlying assumptions. The basic assumptions and principles presented on the next several pages are considered GAAP and apply to most financial statements. In addition to these concepts, there are other, more technical standards accountants must follow when preparing financial statements. Some of these are discussed later in this book, but other are left for more advanced study.…

    • 1303 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    ACC 300 Final Exam

    • 438 Words
    • 3 Pages

    The total dollar amount of assets to be classified as property, plant, and equipment is…

    • 438 Words
    • 3 Pages
    Satisfactory Essays
  • Better Essays

    One of the most significant purposes of General Purpose Financial Reports is providing useful and valuable accounting information, which is an important basis to making appropriate decisions for information users. The quality of accounting information is directly related to information users in decision-making and its consequences. Hence, the four qualitative characteristics, namely Understandability, Relevance, Reliability and Comparability are set out in the conceptual framework to ensure that information users can make the right decisions. This essay will definitely and intensively evaluate and examine the four qualitative characteristics of accounting information.…

    • 1089 Words
    • 5 Pages
    Better Essays